Robinhood’s price levels are worth watching as shares fall after promotion leads to lower earnings

Key Findings

Robinhood shares fell Thursday after the online brokerage missed Wall Street’s quarterly revenue expectations due to its customer rewards program.
The stock broke above the upper trendline of the ascending triangle earlier this month, although the recent bullish price momentum stalled following the release of the company’s third-quarter results.
Investors should watch for important support levels on the Robinhood chart around $24, $22, and $20.50.
The measurement principle, which calculates the depth of the ascending triangle near its widest part and adds that amount to the pattern’s breakout point, projects the stock’s target upside potential to be $31.50.

Stocks on Robinhood Markets (HOOD) fell Thursday after the online brokerage missed Wall Street’s quarterly reports. income expectations through a customer promotion program.

The company, which reported third-quarter revenue of $637 million, below the $653.1 million consensus estimate of analysts surveyed by Visible Alpha, said revenue fell $27 million in the period “due to coincidences paid clients for transfers and deposits.”

Robinhood shares fell 17% to about $23.50 in late trading Thursday. Despite the decline, shares are up 85% year to date, helped by a recovery in retail trading and the recent announcement new products at the HOOD Summit 2024 event.

Below we break down the Robinhood chart and use technical analysis identify important post-earnings price levels to pay attention to.

Bullish momentum stops

Since the break above the upper trend line ascending triangle Earlier this month, Robinhood shares continued to rise ahead of the company’s quarterly report.

However, the recent bullish price pulse stopped on Thursday, and shares returned to three weeks of growth.

Let’s highlight three key support levels that investors can observe and predict growth potential based on charts target price to monitor the stock’s recovery.

Keep an eye on these important support levels

First, it’s worth keeping an eye on the $24 level, a spot on the chart where the stock could attract buying interest near the top trendline of the ascending triangle. This territory, which provided resistance several times between June and September, may now emerge as a key support region.

Failure of bulls to defend this area could see the stock fall to around $22, where the price could find support from horizontal line connecting a series of similar trading levels on the chart from late May to early October.

A more bearish move could trigger a move lower towards the $20.50 area. Investors can search entry points near the trend line at this level, connecting the March peak with the series price action between May and September.

Growth price target to watch

If Robinhood stock recovers, investors can forecast a potential bullish price target using measuring principlea method that analyzes previous price movements to predict future movements.

In this case, we calculate the depth of the ascending triangle near its widest part and add this amount to the breakout point of the pattern. For example, we add $7.50 to $24, which corresponds to a target of $31.50, an area where investors can decide take profit.

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At the time of writing, the author does not own any of the above securities.